Whole Family Support Third Sector Delivery Fund: Fairer Scotland Duty Assessment

Cost of Living and Financial Hardship

The ongoing cost-of-living crisis has disproportionately affected low-income households and priority family groups. Families experiencing poverty spend a greater proportion of their income on essential costs such as housing, energy and food, leaving them particularly vulnerable to rising prices. Research in Scotland has found that public sector debt—money owed to public bodies such as local authorities, government departments and social security agencies (for example, council tax arrears, rent arrears and benefit advances) can worsen household financial hardship, with some households taking on additional consumer debt to manage their finances ^[3] .

Evidence also shows substantially higher rates of food insecurity among families living in the most deprived communities. Parents in these communities are considerably more likely to worry about running out of food or reduce their own food consumption to provide for their children ^[4].